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Externalities of Education on Efficiency and Production Uncertainty of Maize in Rural Malawi

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  • Mussa, Richard

Abstract

The paper looks at the existence, nature and form of intrahousehold and interhousehold externalities of education on efficiency and production uncertainty of maize in rural Malawi. Data from the Third Integrated Household Survey are used. I find statistically and economically significant positive intrahousehold and interhousehold externalities of education on both efficiency and production uncertainty, and that the intrahousehold externality effects are larger than interhousehold externality effects. Community level schooling is found to substitute for household level schooling in the sense that farmers who reside in households where members are not educated have relatively higher efficiency and lower production uncertainty on account of living in communities where some inhabitants are educated. The paper also finds that the intrahousehold and interhousehold externality effects are more pronounced for the least efficient farmers, and that they are monotonic, and largest when schooling is relatively low.

Suggested Citation

  • Mussa, Richard, 2014. "Externalities of Education on Efficiency and Production Uncertainty of Maize in Rural Malawi," MPRA Paper 54628, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:54628
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    References listed on IDEAS

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    2. Sharada Weir & John Knight, 2007. "Production Externalities of Education: Evidence from Rural Ethiopia," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(1), pages 134-165, January.
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    4. Véronique Gille, 2012. "Education spillovers: empirical evidence in rural India," Indian Growth and Development Review, Emerald Group Publishing, vol. 5(1), pages 4-24, April.
    5. Hadri, Kaddour, 1999. "Estimation of a Doubly Heteroscedastic Stochastic Frontier Cost Function," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(3), pages 359-363, July.
    6. Deininger, Klaus & Jin, Songqing, 2006. "Tenure security and land-related investment: Evidence from Ethiopia," European Economic Review, Elsevier, vol. 50(5), pages 1245-1277, July.
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    8. Simon Appleton & Arsene Balihuta, 1996. "Education and agricultural productivity: Evidence from Uganda," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(3), pages 415-444.
    9. Weir, Sharada & Knight, John, 2004. "Externality Effects of Education: Dynamics of the Adoption and Diffusion of an Innovation in Rural Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 93-113, October.
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    12. World Bank, 2013. "Malawi Public Expenditure Review," World Bank Other Operational Studies 20586, The World Bank.
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    Cited by:

    1. Nancy McCarthy & Talip Kilic & Alejandro de la Fuente & Joshua M. Brubaker, 2018. "Shelter from the Storm? Household-Level Impacts of, and Responses to, the 2015 Floods in Malawi," Economics of Disasters and Climate Change, Springer, vol. 2(3), pages 237-258, October.

    More about this item

    Keywords

    intrahousehold; interhousehold; externality; Malawi;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior

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